> takes the information, stores it on its servers, and uses it
So does, for example, Yodlee, when you use them to have an API for bank statements. I cannot say if they too monetize the data that opens up to them for grabs.
It took legislation and years of preparation to enforce APIs and interoperability onto European banks (yes, I can now use bank A's app to view my account balance in bank B, while maintaining control over what kind of access I'm giving). Can't see it happening in the US, though, although the demand for such APIs is clearly there, given that companies like Plaid and Yodlee prosper.
I would wager that 90% of the business for Plaid, Yodlee, and Intuit is account verification; the thing that you used to do by having small ACH transfers of random amounts that you verify. The fact is that 90% of running a fintech business is identifying and bounding fraud risk, and these "banking API" companies are able to move the needle down a couple of basis points.
edit It's shit like this that just screams for the Fed to force FIs to implement a standard API for verifying accounts and making transfers. I bet half of fintech would collapse overnight, but the collective cost savings would be in the billions.
So does, for example, Yodlee, when you use them to have an API for bank statements. I cannot say if they too monetize the data that opens up to them for grabs.
It took legislation and years of preparation to enforce APIs and interoperability onto European banks (yes, I can now use bank A's app to view my account balance in bank B, while maintaining control over what kind of access I'm giving). Can't see it happening in the US, though, although the demand for such APIs is clearly there, given that companies like Plaid and Yodlee prosper.